Adaptec Announces Strong Preliminary Third Quarter Results.MILPITAS, Calif.--(BUSINESS WIRE)--Jan. 6, 1999--Adaptec, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ADPT ADPT Automated Data Processing/Telecommunications ADPT Adaptec Corporation (stock symbol) ADPT Adaptive Prediction ADPT Auger Depth Profiling Technique ADPT Automated Data Processing Telecommunications ADPT Adapter ) announced today that preliminary results for the company's fiscal '99 third quarter (ended December 31, 1998) operations show total revenues of approximately $183 million. Approximately $24 million of that figure will be classified as discontinued operations associated with the pending sale of Adaptec's Peripheral Technology Solutions (PTS PTS put to sleep; a common euphemism for euthanasia, but also used to describe general anesthesia. ) group. Given Adaptec's early analysis of its revenues, it anticipates diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of to exceed $0.20 for the quarter. The company expects to announce its final results for the quarter on January 25, 1999 after the market closes. Adaptec attributes these preliminary results to three principal factors: continued robust demand for the company's core host bus adapter See host adapter. and software products; strong initial shipments of its 64-bit RAID product (officially announced in Adaptec's press release "Adaptec Makes 64-bit RAID a Reality" dated January 4, 1999); and better-than-anticipated progress on a previously announced expense reduction program. "We are taking the unusual step of preannouncing our preliminary third quarter results because our expected performance is significantly higher than current street expectations," said Andy Brown, CFO See Chief Financial Officer. of Adaptec, Inc. "It is in that regard that we felt it was necessary to effectively communicate with our investors the progress we have made in refocusing the company." Several Divestitures during the Quarter Closed In related corporate news, Adaptec also announced today that four divestitures announced earlier this quarter have now closed: the sale of high-end peripheral technology solutions to Texas Instruments Incorporated; the formation of BroadLogic Inc. as an independent satellite networking technologies company; the transfer of certain Fibre Channel technologies and assets to Jaycor Networks, Inc. (JNI (Java Native Interface) A programming interface (API) in Sun's Java Virtual Machine used for calling native platform elements such as GUI routines. RNI (Raw Native Interface) is the JNI counterpart in Microsoft's Java Virtual Machine. JNI - Java Native Interface ) in return for an equity stake in JNI; and the transfer of certain external storage technologies and products to Chaparral Technologies, Inc. (CTI (Computer Telephone Integration) Combining data with voice systems in order to enhance telephone services. For example, automatic number identification (ANI) allows a caller's records to be retrieved from the database while the call is routed to the appropriate party. ) in exchange for an equity stake in CTI. Bob Stephens Named to Board of Directors Bob Stephens, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Adaptec, has been appointed to the board of directors of Adaptec, Inc. Mr. Stephens was named president of the company on October 20, 1998, having joined Adaptec in November 1995 as chief operating officer. Before joining Adaptec, he was founder and chief executive officer of Power I/O (Input/Output) The transfer of data between the CPU and a peripheral device. Every transfer is an output from one device and an input to another. See PC input/output. I/O - Input/Output , a firm acquired by Adaptec in 1995. Mr. Stephens was also president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Emulex Corporation, and held various senior management positions at Western Digital Corporation. He began his career at IBM and holds a master's degree in industrial psychology from San Jose State University. Safe Harbor Statement The information in this release regarding expected results of operations is forward looking and preliminary. Actual results for the quarter could differ materially depending on a number of factors, including the results from the final compilation of financial data from the company's various business entities and the possible need for adjustments or accruals not currently anticipated. For a more detailed discussion of factors that affect the company's operating results, interested parties should review the company's SEC reports, including Adaptec's Annual Report on Form 10-K for the fiscal year ended March 31, 1998, and Quarterly Reports on Form 10-Q for the quarter ended September 30, 1998. About Adaptec Adaptec provides bandwidth management technologies for organizations building the global information infrastructure. Its high-performance I/O, connectivity, and network products are incorporated into the systems and products of major computer and peripheral manufacturers. Founded in 1981 and headquartered in Milpitas, Calif., Adaptec employs people worldwide in design, manufacturing, sales, service and distribution. Adaptec's home page is http://www.adaptec.com. |
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